Case: VAT Deductions for Real Estate Sales for a Holding Company

• A company had various taxable activities, including real estate sales, from July 1, 2017 to December 31, 2019
• The company earned revenue of 25,000,000 DKK excluding VAT in January 2020
• The company incurred a broker fee of 531,250 DKK in December 2019, which was fully deductible
• The company was granted partial deduction for VAT on general expenses due to activities both within and outside the scope of the VAT law
• The National Tax Tribunal upheld the Tax Authority’s decision for VAT periods in 2017 and 2018
• The Tax Authority’s calculation of the partial deduction percentage for 2019 was referred back for further review
• The company’s real estate sales commission of 25 million DKK excluding VAT for 2019 was not included in the deduction calculation as it related to 2020.

Source: info.skat.dk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

---

---